Which statement about unbanked individuals is true?

Which statement about unbanked individuals is true?

• A. Unbanked individuals typically have easy access to affordable financial services.
• B. Unbanked individuals face higher fees for financial services.
• C. Unbanked individuals are required by law to have a bank account.
• D. Unbanked individuals automatically earn interest on cash holdings.

Answer: (B)

The main idea is that people who are unbanked don’t rely on traditional banks for their everyday finances. Because they don’t have bank accounts, they often turn to alternative services like check cashing, storefront money transfers, or prepaid cards, which tend to charge higher fees. Those higher costs make financial services less affordable overall for the unbanked compared with people who use banks. It isn’t true that they’re required by law to have a bank account, nor that they automatically earn interest on cash holdings, and they typically don’t have easy access to affordable financial services—so the statement about higher fees best describes their situation.

The main idea is that people who are unbanked don’t rely on traditional banks for their everyday finances. Because they don’t have bank accounts, they often turn to alternative services like check cashing, storefront money transfers, or prepaid cards, which tend to charge higher fees. Those higher costs make financial services less affordable overall for the unbanked compared with people who use banks. It isn’t true that they’re required by law to have a bank account, nor that they automatically earn interest on cash holdings, and they typically don’t have easy access to affordable financial services—so the statement about higher fees best describes their situation.